[Verse 1]
In the realm where mission trumps the bottom line
Not-for-profit entities serve a different design
No ownership shares, no equity to claim
Resource stewardship becomes their accounting game
Part Three of the Handbook holds the key
To financial statements that show accountability
[Chorus]
P-A-R-T Three rules the NFP scene
Performance plus position, accountability's dream
Restricted funds and designated too
Transparency matters in everything you do
Net assets tell the story clear
Mission over money year by year
[Verse 2]
Revenue recognition gets a special twist
Contributions and grants can't be missed
Time restrictions, purpose restrictions bind
Endowment funds with conditions defined
Expenses by function, expenses by nature
Donor intentions guide each nomenclature
[Chorus]
P-A-R-T Three rules the NFP scene
Performance plus position, accountability's dream
Restricted funds and designated too
Transparency matters in everything you do
Net assets tell the story clear
Mission over money year by year
[Bridge]
Statement of operations shows the annual flow
Statement of changes where net assets go
Cash flow from operating, investing, financing streams
Board designated funds fulfill strategic dreams
Comparative figures paint the bigger picture
Public trust depends on every fiscal fixture
[Verse 3]
Fund accounting principles organize the maze
Temporarily restricted, permanently in place
Capital asset recognition follows different rules
Amortization methods provide the tools
Notes disclosure amplifies the story told
Stewardship reporting never gets old
[Chorus]
P-A-R-T Three rules the NFP scene
Performance plus position, accountability's dream
Restricted funds and designated too
Transparency matters in everything you do
Net assets tell the story clear
Mission over money year by year
[Outro]
Three statements minimum, notes complete the tale
Public accountability must never fail
NFP framework serves the greater good
Part Three compliance, clearly understood